US election: Polls say outcome is a coin tossBrace for volatility and stay alert for opportunities, say investing experts regarding today’s consequential US election.With the US stock market making up more than 60 per cent of the global market, all investors have exposure to the US one way or another, so it has an outsize importance on portfolios.The superpower either controls or heavily influences interest rates around the world, international trade via tariffs, corporation tax on the biggest global companies, and geopolitics (meaning, bluntly, whether we are at war or not).With all that on the line, and more, financial markets have not priced in the result of the election battle between Democratic vice-president Kamala Harris and three-time Republican nominee and former president Donald Trump. It’s just too close to call.Investing experts explain the stakes, the strategies you can pursue and the opportunities to profit below.What you need to know about the US electionThe race for the presidency is deadlocked in the polls. So is the fight for the House of Representatives in Congress, currently held by the Republicans.The Senate, presently controlled by the Democrats, is likely to fall to the Republicans, but even that is not certain.In the US, Congress is responsible for making laws and has two houses, the House of Representatives and the Senate.Bills need to pass in both to become law, so if control of the separate houses is split it becomes harder to turn policies into laws.The 435 members of the House of Representatives represent their congressional district’s local population – similar to MPs in the UK – and are re-elected every two years, at elections and mid-terms.The 100 senators in the Senate represent the state and are re-elected every six years, roughly a third at each election and mid-term.’More recently, polling has shown a move towards Donald Trump,’ says Hal Cook, senior investment analyst at Hargreaves Lansdown.’This has meant investors becoming increasingly focused on the implications of a Trump clean sweep – where he wins the presidency, and the Republicans win majorities in both the House of Representatives and the Senate.’He says that would make it much easier for Trump to enact policy changes.’Expectations are that many of his policies would be inflationary, potentially reducing the Federal Reserve’s ability to cut interest rates.’And that’s without trying to understand how the potential geopolitical impacts of a clean sweep might impact markets.’This has meant that yields on US Treasuries have increased, and prices have fallen over the last six weeks or so.’The 10-year US Treasury yield hit a low of around 3.6 per cent in mid-September. It’s back up to about 4.3 per cent.’Dan Coatsworth, investment analyst at AJ Bell, says: ‘Unlike the UK general election where Labour had such a wide lead in the polls from the start and which made it easy to spot the sectors that could thrive or dive under its leadership, the US election is impossible to call.He says Trump’s previous term as president is associated with a strong stock market run whereas the Biden administration – and Harris by default – is clouded by a period of high inflation and high interest rates.’That puts Trump at an advantage in the current election campaign as the cost-of-living crisis has been difficult for the general public and they’re looking for someone to find solutions.’Harris might need to better explain that Biden wasn’t responsible for high inflation – the real cause was global supply chain disruption during the pandemic, followed by Russia’s invasion of Ukraine.’Coatsworth adds: ‘Trump may not be the solution to a high cost of living as his policies are likely to drive up inflation.’He wants to impose big tariffs on imported goods (60 per cent from China, up to 20 per cent on the rest of the world) which would significantly push up prices as the extra costs are passed onto the customer.’The big risk to markets from a Trump election victory is a trade war.’Meanwhile, Coatsworth says Harris’s plan to raise corporation tax could hurt earnings and affect stock valuations, leading to lower share prices should she get into power.’However, Wall Street may prefer her approach to Donald Trump given the former president’s widely unpredictable nature.’The one thing stock markets hate is uncertainty and this could be elevated to the max by the return of Trump to the White House, given past form with him being impulsive and provocative.’ What are the key investing strategies for the US election Investing platform Saxo lays out the three main options for investors.1. Keep calm and carry onIf you have a well-diversified portfolio and a long-term investment horizon, your most likely course of action is to just stick to your strategy and keep building a diversified portfolio.If you run to the hills and sell your investments, you risk missing out on chances that could end up costing you compounding returns down the road.2. Prepare your portfolio for volatilityIf you just have one or a few stocks in your portfolio, you could consider diversifying your portfolio, spreading your investments across various sectors and regions to mitigate risks.This way you’ll lower your portfolio’s risk related to a specific company or companies and their circumstances.3. Seek election-driven opportunities for investingFor those with a more adventurous mindset, the election may also present opportunities for targeted investments.Finding sectors that could benefit from the election’s outcome can allow you to capitalise on these opportunities.You could consider keeping some portion of your portfolio in cash, for example 10-15 per cent.If the rest of your portfolio is well-diversified, this setup means you can grasp opportunities that arise from the election without putting your entire portfolio at risk. Financial markets have not priced in the result of the election battle between Democratic vice-president Kamala Harris and ex-president Donald TrumpWe won’t know until we know… ‘With the election being an effective coin-toss, betting on a specific outcome doesn’t seem sensible,’ says Hal Cook of Hargreaves Lansdown.’Instead, remember that diversification is your friend.’ With this in mind, he tips:Invesco Tactical Bond (Ongoing charge: 0.72 per cent)With likely bond market volatility, a diversified global bond fund could be a good option, says Cook.Stuart Edwards and Julien Eberhardt invest flexibly, in all types of bonds.They aim to provide some income and growth over the long-term, with a focus on keeping losses during periods of market stress to a minimum.Their focus on limiting losses has meant that their fund has typically had less ups and downs than the wider market.Their active management approach also means they can stay away from areas of bond markets that they think could perform poorly, and means the fund is highly diversified.We think this is a great option to invest in a fund with experienced managers who are able to act quickly to take advantage of the global opportunities that come from market volatility.Artemis Global Income (Ongoing charge: 0.88 per cent)If it’s shares you are interested in, perhaps look to a fund that invests globally without as big a focus on the US.Jacob De Tusch-Lec has managed this fund since launch in July 2010 and he aims to deliver income and growth by investing in companies from around the world. He favours developed markets and tends to invest more in the UK and Europe than global stock market indices.He conducts detailed company analysis to identify those with a healthy amount of cash to either pay out dividends or buy back shares.As a natural contrarian, De Tusch-Lec is not afraid to invest in out-of-favour companies with recovery potential alongside higher-risk smaller companies.A focus on companies perceived to be undervalued is the overriding style which means the fund could work well alongside more growth-focused funds.” Key Harris policies Dan Coatsworth rounds up her business plans.- Support US manufacturing and emerging technologies with tax breaks and incentives- Push up corporation tax from 21 per cent to 28 per cent- Capital gains tax rise to 28 per cent on people earning $1million or more- More business regulation Kamala Harris wins: Sectors which could benefitTechnology’Harris is an advocate for technological innovation which should be supportive for big tech firms despite the risk of greater regulation if she becomes president,’ says Coatsworth.’Companies active in artificial intelligence, cybersecurity and digital infrastructure could be the winners if Harris gets in.’That creates a tailwind for companies like Microsoft and Nvidia, names which have helped to drive strong US stock market returns over the past few years.’Allianz Technology Trust (Ongoing charge: 0.70 per cent)The investment trust’s manager Mike Seidenberg believes cybersecurity has the best runway for growth among the different parts of the technology space, says Coatsworth.The trust has considerable exposure to this area, along with AI and machine learning.”Green energy’Kamala Harris is on a mission to address climate change and environmental challenges in the US and investors might see her winning the election as generating a better backdrop for green companies to thrive.’First Trust Nasdaq Clean Edge Green Energy ETF (Ongoing charge: 0.60 per cent)Eighty-eight percent of its assets are held in US-listed green companies ranging from renewable energy operators, semiconductor groups, electric vehicle manufacturers and battery material specialists. Key Trump policies  Dan Coatsworth rounds up his business plans.- Cut corporation tax from 21 per cent to 15 per cent for companies that make products in the US- Big tariffs on imported goods – 60 per cent from China, up to 20 per cent on the rest of the world- Make America ‘the crypto capital of the planet’ and build a strategic reserve of bitcoin Donald Trump wins: Sectors which could benefitDefence’Trump is expected to strengthen America’s defences which creates more opportunities for defence companies,’ says Coatsworth.VanEck Defense ETF (Ongoing charge: 0.55 per cent)It has 64 per cent of assets in relevant US-listed names. Its portfolio includes American government and military contractor Booz Allen Hamilton which is an intelligence specialist; Palantir Technologies which helps the US army with data insights; and Leidos which supports homeland security and is active in weapons systems research and development.Oil and gas’A Trump election victory could also create a tailwind for domestic fossil fuel producers in an effort to fortify America’s energy security,’ says Coatsworth.iShares Oil & Gas Exploration & Production (Ongoing charge: 0.55 per cent)Approximately two thirds is held in US-listed assets, including a stake in EOG Resources which is one of America’s key oil and gas players.Cryptocurrencies’In theory, cryptos could see the biggest and most immediate price action if Trump wins,’ says Coatsworth.’However, it’s interesting that the bitcoin price has been volatile in recent weeks, suggesting that some investors and traders might be waiting for a stronger signal that Trump will win before going all-in on the digital currency.’DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthSaxoSaxoGet £200 back in trading feesTrading 212Trading 212Free dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.